Jurisdiction(s):
United Kingdom

United States insurance bad faith: overview of first- and third-party claims, duties to defend, indemnify and settle, remedies, third-party rights, assignments and reverse bad faith

Published by a LexisNexis Insurance & Reinsurance expert

Practice notes

This Practice Note offers a high-level summary of insurance bad faith claims, covering the policyholder’s entitlements under an insurance policy, the events that trigger a claim, and the advantages of issuing a claim. Where a jurisdiction’s statutory regime sets out acts, omissions, delays, or commercial practices that may underpin a bad faith action, or obliges a complainant to meet conditions precedent before bringing one, these are identified. Save for any state-specific illustrations, this Practice Note is non-jurisdictional. For further detail on common bases for insurance bad faith claims and issues arising in bad faith disputes, see Practice Note: US—insurance bad faith coverage litigation.

What is an insurance bad faith claim?

Under an insurance contract or policy, insurers owe numerous obligations to those they insure (the policyholder or insured) and to individuals pursuing claims against their insureds (claimants). In meeting those obligations, insurers must act in good faith and treat both insureds and claimants fairly, particularly when assessing and managing claims. An insurer’s improper handling of a policyholder’s or third party’s claim can give rise to extra-contractual causes of action such as bad faith claims, especially when...

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Web page updated on 22/05/2026

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